Self-Employed, How to treat a payment of “Appreciation/Honorarium”, received at the end of a business relationship from a company I serviced for years.

[Joe51]

Hi,

When the job I was performing for one of the companies I service outgrew my capacity, they contracted another supplier to replace me.  Our relationship spanned many good years, and I was handed a cheque for several thousands of dollars towards no work performed. I was happy to receive the extra money, and assumed it was a gesture of Appreciation & Honorariums.

Am I correct to treat this as cash Taxable benefit, and if so where do I include it using the Online TurboTax Business and Home software? Can I treat it as Other Income?

Please advice ASAP,

Thanks in Advance,

Joe

[Joe51]

Hello Again,
If I was to treat this as Other Income; do I report it as Other Income in "T2125 Business Income"?, or as Other Income where you "Enter any amount that is not employment related or already reported on your return."?. Also, what would you suggest the description be (Appreciation & Honorariums) or something else? Please help and advice. Thank You.

[TurboTax-Julie-S]

Hi Joe, thanks for your question. You should treat this as income and add it to your gross income.

Thanks for using TurboTax, please let us know if you have any other questions.

Regards,
Julie

[Joe51]

Thank You so much for your help Julie.
I assume you mean to add it to my "Gross Business Income" in the "Other Income" Screen of my T2125?; and NOT to Line 130 "Other income"? Please Specify.
Also, in the description field of "Other Income", I wrote:
"Honorarium - Appreciation at end of long exceptional service"
Is that good enough? Any suggestions?

Thank you again,
Joe

[Joe51]

Thank You so much for your help Julie.
I assume you mean to add it to my "Gross Business Income" in the "Other Income" Screen of my T2125?; and NOT to Line 130 "Other income"? Please Specify.
Also, in the description field of "Other Income", I wrote:
"Honorarium - Appreciation at end of long exceptional service"
Is that good enough? Any suggestions?

Thank you again,
Joe

[TurboTax-Julie-S]

Hi Joe - you are correct - it would be part of your Gross Business Income in your T2125.

Thank you,
Julie

[Joe51]

Great Help. Thank You for the quick response Julie

[TurboTax-Julie-S · Accepted solution]

Hi Joe,

Thanks for your question. You should treat this as income and add it to your gross income.

Thanks for using TurboTax, please let us know if you have any other questions.

Regards,
Julie